Gannett raises bid for Tribune

Chicago Tribune (TNS)

CHICAGO

Gannett raised its all-cash offer to acquire Tribune Publishing to $15 per share, up from $12.25 per share, according to a Securities and Exchange Commission filing Monday.

The increase raises the stakes after Tribune Publishing earlier this month rejected Gannett’s unsolicited bid to acquire the Chicago-based owner of the Chicago Tribune, Los Angeles Times and other major newspapers. The revised offer values Tribune Publishing at $864 million, rather than $815 million, including the assumption of debt.

“Gannett, with the assistance of its outside advisors, is ready to immediately engage with Tribune on an expedited basis,” Robert Dickey, president and chief executive officer of Gannett, said in a news release. “Our increased, all-cash offer provides Tribune shareholders with a significant premium of 99 percent and immediate, certain value. By not engaging constructively with Gannett, we believe Tribune is jeopardizing its shareholders’ investment and disregarding their best interests.”

Tribune Publishing confirmed receipt of the higher bid Monday and said in a news release its board will “thoroughly review” Gannett’s revised proposal.

The increased offer reflects additional analysis of Tribune financial statements filed earlier this month, and Gannett’s “greater confidence in its ability to yield additional operating improvements” in the transaction, the company said. Gannett previously said it would save $50 million annually through the Tribune Publishing acquisition.

McLean, Va.-based Gannett, publisher of USA Today and more than 100 newspapers, offered to buy Tribune Publishing for $12.25 per share in an all-cash deal that included the assumption of $390 million in debt. Tribune Publishing’s board voted unanimously to reject the offer May 4.